RIM Overhauls BlackBerry for IPhone Battle?

I saw this headline on Bloomberg, RIM Overhauls BlackBerry for IPhone Battle, and I thought this is dead wrong. It shows how the media is missing one of the biggest developments in the smartphone market: Android. RIM isn't battling IPhone, it is fighting against Android. Furthermore, RIM is actually working with Apple and Microsoft to stop Android's momentum.


Watching the media you might be surprised to know that the number one smartphone platform in the USA isn't IPhone, it's Android. See Android Leaves Apple iOS In The Dust which states that

Android's total U.S. share for June came in at 39%, compared to 28% for Apple, according to data compiled by market watcher Nielsen. RIM's BlackBerry OS was in third place with 20% of the market.

And Google Tops Estimates as CEO Page Expands Beyond Search Ads which says

Google’s Android mobile operating system is expected to maintain its lead globally this year with 38.9 percent of the worldwide smartphone market, compared with 18.2 percent for Apple Inc.’s iPhone, according to research firm IDC. Page said on today’s call that 550,000 Android devices are activated on a daily basis.550,000 Android devices are activated on a daily basis.

The momentum of Android is so strong that RIM, Apple, and Microsoft have joined forces and are attempting to use legal means to hold back Android. See When Patents Attack Android for details on how technology companies are using patents to hold back Android and hampering competition in the industry. Software patents are a whole other topic which deserve their own post.


What does this mean for investors? For one, the lack of media attention is good for investors. Because it means the the biggest advance in the Technology sector might sneak in under the radar. Any hardware manufacturer can make an Android device, with companies like Samsung, HTC, Motorola, and Sony-Ericsson leading the way. Keep an eye on these device manufacturers.


Also, it means that the issue of software patents is getting much deserved attention. The patent system as used for software is broken, and stifles competition. I expect having big companies attack a large player like Google will help settle long standing issues with software patents. In fact, that process may already be taking place, see UK copyright system set for massive overhaul which states that

The government will resist the introduction of software patentswithout clear evidence that they would benefit innovation and growth. Hargreaves had recommended this course as a way of avoiding'patent thickets'.

"[Hargreaves's] review paints a picture of an IP system that is the foundation for a substantial proportion of the UK's innovation and economic growth but which needs to adapt to meet the challenge of new technologies," said the response, signed by business secretary Vince Cable, culture secretary Jeremy Hunt and chancellor George Osborne. "The government believes this is fundamentally the right view."

Settling these issues should be benefit innovative software companies and hurt those seeking to protect their markets through legal means. It should also help the economy as a whole as software helps us all become more productive.